QuestionsQuestions (Republic Act No. 7161)
RA 7161 amends the Revised Forestry Code (P.D. 705) by incorporating certain provisions of the National Internal Revenue Code of 1977 and increasing forest charges on timber and other forest products.
Sections 230 to 238 and 297 of the National Internal Revenue Code of 1977 are incorporated into P.D. 705.
References to the BIR/Commissioner/Ministry of Finance are replaced with the Forest Management Bureau/Director of the Forest Management Bureau/Secretary of Environment and Natural Resources.
They are placed under a new subtitle of Chapter III (Utilization and Management), designated as Subtitle H.
Twenty-five percent (25%) of the actual FOB market price based on species and grading for timber in the first, second, third, or fourth group.
Ten percent (10%) of the actual FOB market price per cubic meter.
A fixed amount of Ten pesos (P10.00) per cubic meter, except for mangrove species whose cutting is banned.
Generally only third or fourth group wood can be taken for firewood; however, first and second group woods may be removed if jointly authorized by the DENR and the Department of Agriculture.
All other forest products of forestland not covered by earlier sections are exempt from forest charges, except specific listed products (rattan, gums and resins, beeswax, guta-percha, almaciga resin, and bamboo).
They are charged at ten percent (10%) of the actual FOB market price.
The rates are effective upon approval of the Act, but they must also be published in the Official Gazette or in two newspapers of national circulation and posted in conspicuous places in DENR field offices.
It is justly determined once a year by the Secretary of Environment and Natural Resources, using criteria/guidelines formulated by a committee including DENR, NEDA, DTI, BIR, and representatives from the wood and furniture industry and consumers.
Production cost (developing cost, contingencies, miscellaneous cost), species and grade of timber, government share, reforestation, tariff duties, taxes, risk involved, and a reasonable margin of profit for domestic and export market prices.
Naturally growing timber and forest products gathered within public forestlands, alienable and disposable lands, and private lands.
Forest charges collected are in lieu of the administrative charge on environment and other fees and charges imposed thereon.
Planted trees and other forest products harvested from industrial tree plantations and private lands covered by existing tiller or by approved land application are exempt.
Section 73 of P.D. 705 (as numbered in RA 7161) is repealed; the text does not provide a detailed substantive reason, but the repeal is part of renumbering and restructuring of the forest charge provisions.
Section 77 is repealed in its stated form; Sections 68 and 68-A/68-B are renumbered as 77, 77-A, and 77-B, respectively; succeeding sections 69 to 80 become 78 to 89, and 80-A and 80-B to 83 become 89-A and 89-B to 92.
Fifteen (15) days after its publication in a newspaper of general circulation.